Letitia James, the Attorney General of New York, has been referred to the Federal Housing Finance Agency (FHFA) for a criminal investigation for claims of mortgage fraud involving two properties.
In a letter to the United States Department of Justice, the Director of the Federal Housing Finance Agency, William Pulte, accused James of providing fraudulent information in order to get advantageous loan terms.
Since then, the referral has added to the tensions that already existed between James and the administration of Trump.
James has stated that she is not guilty of any crime and that her niece is the primary occupant of the Norfolk property. There are five units listed on a 2001 certificate for her Brooklyn house, according to city documents; yet, it is only four units indicated in finance records.
James stated that, “It is nothing more than a headline, nothing more than, again, retaliation against all of the actions that I have taken successfully against Donald Trump.”
With a particular emphasis on the question of whether or not incorrect information led to lower mortgage rates, legal experts pointed out the intricacy of the issue. There were reports that James had given her niece permission to act on her behalf in the transaction involving the property in Norfolk.
Natalia Sishodia, an attorney specializing in real estate, stated, “I would like to know what benefit she actually received by providing the incorrect information on the mortgage document. If it led to some benefit, then it could be potential fraud because no one can provide untruthful information or false information on the mortgage documents,” she continued. “If it led to some benefit, then it could be potential fraud.”
Real estate attorney Michael Fichera Jr. said, “If the allegations are correct, and we have to take everything with a grain of salt, it could be a legitimate issue for her.” He continued, “If you’re buying something as an investment, your loan terms are different and your rates are higher.”
A civil fraud judgment of $454 million was successfully obtained by James against President Donald Trump for misrepresenting property valuations in order to acquire better financing.
This referral follows James’ successful case. The ruling is being appealed by Trump, who has accused James of engaging in political discourse.
James stated that, “Let me just say to all New Yorkers and all Americans the allegations are baseless. The allegations are nothing more than a revenge tour and as you mentioned my office was successful in securing a $454 million judgment against Donald Trump and others for exaggerating the value of his assets. He engaged in a pattern and practice of fraud and the interest is accruing each and every day whilst the case is on appeal in the first department.”
Read Also: Republican Michael Henry Gains Momentum, Targets Letitia James in Possible Rematch
Adrienne Adams, the Speaker of the New York City Council, openly expressed her support for James and referred to the referral as being politically driven.
Adams stated, “Letitia James has spent her career standing up to powerful interests and fighting for everyday New Yorkers. Now she’s being targeted by a president who abuses the power of the federal government to go after his enemies.”
There has been no formal filing of charges against Attorney General James, and the situation regarding the prosecution is still unknown. James has stated that she will offer a response to the charges through the judicial system.
